2023 Second Quarter Financial Results

Toronto – April 13, 2023 – Talent acquisition firm The Caldwell Partners International Inc. (TSX: CWL; OTCQX: CWLPF) today issued its financial results for the fiscal 2023 second quarter ended February 28, 2023. All references to quarters or years are for the fiscal periods unless otherwise noted and all currency amounts are in Canadian dollars.

Financial Highlights (in $000s except per share amounts)

Three Months Ended Six Months Ended
2.28.23 2.28.22 2.28.23 2.28.22
Professional fees – Caldwell 16,705 27,258 33,680 53,850
Professional fees – IQTalent1 4,745 12,550 11,459 24,272
Consolidated professional fees 21,450 39,808 45,139 78,122
Direct expense reimbursements 133 135 352 251
     Revenues 21,583 39,943 45,491 78,373
Cost of sales 18,266 30,271 39,191 60,703
Reimbursed direct expenses 133 135 352 251
Gross profit 3,184 9,537 5,948 17,419
Selling, general and administrative expenses4 6,070 3,820 11,159 9,774
Restructuring expenses2 2,530
Acquisition-related expenses3 204 690 879 1,491
     Operating profit (loss) (3,090) 5,027 (8,620) 6,154
Finance (expenses) recovery (56) (194) 64 (178)
     (Loss) earnings before tax (3,146) 4,833 (8,556) 5,976
Income tax expense (recovery) (826) 1,331 (2,293) 1,729
     Net earnings (loss) after tax (2,320) 3,502 (6,263) 4,247
     Basic earnings per share ($0.090) $0.137 ($0.242) $0.166
  1. Professional fees of IQTalent are presented net of elimination of intercompany revenue.
  2. Restructuring expenses includes $2,264 of severance expense for staff reductions at IQTalent and $266 in onerous lease costs at Caldwell for the sublease of our San Francisco office as a result of our transition to a remote work environment.
  3. Acquisition-related expenses consist of transaction fees and IQTalent purchase price structured as compensation expense, which ended on 12/31/22.
  4. Selling, general and administrative expenses include a benefit from a lower share price reducing share-based compensation expense by $357 compared to a benefit in the second quarter last year of $1,688, ii) $521 of costs for our annual partner conference held in the current second quarter this year and in the third quarter last year, iii) $323 in higher professional fees primarily related to due diligence advisory and legal fees on two transactions ultimately not completed due to diligence results and iv) other variances of $75 discussed in our quarterly MD&A filed on SEDAR.

“The second quarter brought stabilization in overall hiring demand, albeit at levels that were lower than the same period last year – a record-breaking fiscal year for us,” said John Wallace, chief executive officer. “Clients who have been broadly talking about resuming hiring have, in part, pushed those plans further into calendar 2023 pending more certainty on evolving economic conditions. At Caldwell, our executive search team is a group of seasoned professionals who have experience advising clients through multiple economic cycles; they’re using their expertise to find business in a suppressed market.”

“At IQTalent, our on-demand talent acquisition augmentation business, we saw further revenue erosion in the first part of the quarter, followed by stabilization in the past several months. As a result, in January IQTalent reduced staffing levels to the stabilized business demand to lower costs and minimize operating losses at current professional fee levels. Our March 1 spin off of IQTalent’s software business and related development team will further reduce costs going forward.”

Wallace continued: “We remain optimistic about our ability to return to profitability in the fiscal year and have full confidence in the strength of our spectrum of service offerings, our team and our future. Our clients value our ability to provide seamless support for their talent acquisition needs at all levels and we are focused on identifying opportunities to cross-collaborate between our two business segments.”

For a complete discussion of the quarterly financial results, including a detailed segment analysis, please see the company’s Management Discussion and Analysis posted on SEDAR at www.sedar.com.

Click to read full financial statement.

About Caldwell Partners

Caldwell Partners is a technology-powered talent acquisition firm specializing in recruitment at all levels. Through two distinct brands – Caldwell and IQTalent – the firm leverages the latest innovations in AI to offer an integrated spectrum of services delivered by teams with deep knowledge in their respective areas. Services include candidate research and sourcing through to full recruitment at the professional, executive and board levels, as well as a suite of talent strategy and assessment tools that can help clients hire the right people, then manage and inspire them to achieve maximum business results.

Caldwell Partners’ common shares are listed on The Toronto Stock Exchange (TSX: CWL) and trade on the OTCQX Market (OTCQX: CWLPF). Please visit our website at www.caldwell.com for further information.

Forward-Looking Statements

Forward-looking statements in this document are based on current expectations that are subject to the significant risks and uncertainties cited. These forward-looking statements generally can be identified by use of statements that include phrases such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “foresee,” “may,” “will,” “likely,” “estimates,” “potential,” “continue” or other similar words or phrases. Similarly, statements that describe our objectives, plans or goals also are forward-looking statements. The Company is subject to many factors that could cause our actual results to differ materially from those contemplated by the relevant forward looking statement including, but not limited to, software that we license from third parties, our ability to successfully recover from a disaster or other business continuity issues, successfully integrating or realizing the expected benefits from our acquisitions, adverse operating issues from acquired businesses, our ability to attract and retain key personnel; exposure to our partners taking our clients with them to another firm; the performance of the US, Canadian and international economies, including the impact of pandemic diseases; risks related to deposit-taking institutions; competition from other companies directly or indirectly engaged in executive search; liability risk in the services we perform; potential legal liability from clients, employees and candidates for employment; cybersecurity requirements, vulnerabilities, threats and attacks; damage to our brand reputation; our ability to align our cost structure to changes in our revenue; adverse governmental and tax law rulings; our ability to generate sufficient cash flow from operations to support our growth and fund any dividends; technological advances may significantly disrupt the labour market and weaken demand for human capital at a rapid rate; foreign currency exchange rate fluctuations; affiliation agreements may fail to renew or affiliates may be acquired; marketable securities valuation fluctuations; increasing dependence on third parties for the execution of critical functions; volatility of the market price and volume of our common shares; potential impairment of our acquired goodwill and intangible assets; and disruption as a result of actions of certain stockholders or potential acquirers of the Company. For more information on the factors that could affect the outcome of forward-looking statements, refer to the “Risk Factors” section of our Annual Information Form and other public filings (copies of which may be obtained at www.sedar.com). These factors should be considered carefully, and the reader should not place undue reliance on forward-looking statements. Although any forward-looking statements are based on what management currently believes to be reasonable assumptions, we cannot assure readers that actual results, performance or achievements will be consistent with these forward-looking statements, and management’s assumptions may prove to be incorrect. Except as required by Canadian securities laws, we do not undertake to update any forward-looking statements, whether written or oral, that may be made from time to time by us or on our behalf; such statements speak only as of the date made. The forward-looking statements included herein are expressly qualified in their entirety by this cautionary language.

For further information, please contact:


Chris Beck, CPA, President and Chief Financial Officer
+1 (617) 934-1843


Caroline Lomot, Director of Marketing
+1 (516) 830-3535

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